INSIGHT #2: COMPLYING PRESENTATION UNDER DOCUMENTARY CREDIT – HOW CRUCIAL AND COMPLEX IS IT TO COMPLY?

 

Summary

Complying Presentation is a basic tenet that guides payments under Documentary Credit. Uncomplicated as it may appear, given the slew of guidelines contained in UCP 600 and ISBP 745, implementation of this principle can be daunting and at times overwhelming.

Judicial rulings are often characterised by interpretations of this principle that may appear contradictory.

This white paper looks at problems faced in complying with this principle that impact the “3S” of payments under documentary credits, namely Safety, Security and speed of payment.

The paper also examines some important case rulings in this regard.

The White Paper concludes with a view that banks can meet the challenges posed by this principle by diligently and logically applying the core principles of the underlying guidelines.

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